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Significant decline in buy-to-let investors in housing market
Written by Robert McHugh, on 10th Mar 2021. Posted in Property
The latest Housing Market Monitor fourth quarter 2020 published yesterday by Banking & Payments Federation Ireland (BPFI) shows that as the role of individual Buy-to-Let investors continues to decline, accounting for less than 1% of total mortgage drawdowns in 2020, non-household buyers, including private companies, charitable organisations, and state institutions, now account for 23% of all market transactions.
Providing his analysis of the housing market, Brian Hayes, Chief Executive, BPFI further outlines that the supply-demand imbalance in the housing market will continue in 2021 as COVID-19 limits housing supply while demand remains strong especially among households less affected by the pandemic and non-household investors.
There has been a sharp move away from buy-to-let mortgages to fund investments, according to the latest Housing Market Monitor from the Banking and Payments Federation Ireland.
Sharp decline in investors using buy-to-let mortgages to fund investments First time buyers accounted for about 53% of mortgage drawdowns by value last year - BPFI
Tue, Mar 9, 2021, 06:15
Property investors accounted for less than 1 per cent of all mortgage drawdowns in 2020, indicating a sharp move away from buy-to-let mortgages to fund investments. The year also saw a further decline in the level of activity of investors in the market, with the number of investors acquiring properties – with cash or otherwise – falling again.
According to the latest Housing Market Monitor for the fourth quarter of 2020, published by the by Banking & Payments Federation Ireland (BPFI), property investors accounted for less than 1 per cent of all those who completed the purchase of a property with a mortgage last year, down from a peak of 20 per cent of mortgage drawdowns back in 2006.